A young girl shows off Nintendo's newest computer game console, Nintendo 3DS in Tokyo.

No details about the as-yet-unnamed video game system were announced, but a working model will be shown at the upcoming Electronic Entertainment Expo in June in Los Angeles. The system arrives for sale at stores in 2012.

The video game company announced plans for the new game console Monday, along with the financial results for its fiscal year that ended March 31. The Wii remains the top-selling video game system; Nintendo has sold 86 million Wiis since 2006. But recently, sales have declined, resulting in the firm’s second year of disappointing financial results.

Wii sales dropped from about 20 million in the 2010 fiscal year to 15 million in 2011. Similarly, sales of the handheld Nintendo DS fell from 27 million to 17.5 million. Nintendo reported an annual profit of $946.7 million, down 66% from the previous year. Revenue of $12.3 billion represented a decline of 29% from the previous year. Nintendo expects revenue to grow 8.4% this year.

“Financials were pretty terrible,” says analyst Michael Pachter of Wedbush Securities. In addition to hardware sales being worse than expected, sales of games were down slightly, too.

Nintendo hopes that new hardware will help stimulate growth, although sales of a new home system were not included in its financial forecasts. Its newest system, the handheld 3DS, has sold 3.6 million units since its release in February in Japan and March in the U.S., Europe and Australia. It forecasts sales of 16 million for the coming fiscal year.

As for the new home system, Nintendo President Satoru Iwata told Bloomberg News that “we would like to propose a new approach to home video game consoles” with the Wii successor.

Nintendo could become the first next-generation system to market. Microsoft and Sony continue to see solid sales for the Xbox 360 and PlayStation 3. “A new console will give Nintendo a jump on competitive console launches from Microsoft and Sony, so I’m optimistic about Nintendo’s outlook in the near to mid term,” says M2 Research analyst Billy Pidgeon.

But being first doesn’t necessarily mean success, Pachter says. “It’s either going to be a Wii HD with a cool controller, or it’s going to advance the technology to a true next generation,” he says. “The former is a bit late; the latter is problematic, as it won’t likely attract a lot of third-party support.”

While Nintendo was mum about details Monday, it has alluded to continued research and development in the past.

“The day we finish a console, we begin thinking about the next,” said Nintendo of America President Reggie Fils-Aime earlier this year. “But we won’t launch a new system until … Mario creator Mr. Shigeru Miyamoto and Nintendo President Mr. Satoru Iwata have a great gaming concept that we can’t execute with the existing console.”

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